What's a good cap rate in Tucson?

In Tucson, cap rates typically run around 5.8% (Arizona state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Tucson deal lands versus this benchmark.

What's the average rent for a rental in Tucson?

A typical rental in Tucson runs about $1,402–$1,950/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Arizona?

Arizona's effective property tax rate is about 0.62% of value per year — the figure TrueCap applies by default for Tucson deals. You can override it with the exact local rate.

Tucson, AZ

Tucson rental property analysis

Tucson offers Sun Belt growth at a discount to Phoenix — university and defense employment underpin steady rental demand.

Tucson market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

5.8%

Arizona state median

Typical rent

$1,402–$1,950/mo

HUD FMR · 2–3BR · 2026

Typical price

$260,000–$360,000

est., all-in

Property tax

0.62%

Arizona effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Tucson a good place to buy rentals?

More affordable entry than Phoenix with comparable demand drivers (University of Arizona, Raytheon, Davis-Monthan AFB). Solid for balanced cash flow + appreciation.

See the full Arizonainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Tucson

Midtown

Central, stable, strong demand.

University area

Student rentals, high occupancy.

Rita Ranch

Newer SFRs near the base, family renters.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Tucson deal in 60 seconds

Paste a Tucson address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Arizona tax and HUD rent so you start from the right assumptions.

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